The two men Woolworths paid R140,000 a day for 10 years

The two men Woolworths paid R140,000 a day for 10 years received a combined R508.75 million in remuneration between 2016 and 2025, highlighting the enormous compensation packages awarded to top executives in South Africa’s retail sector. Former CEOs Ian Moir and Roy Bagattini earned salaries, incentives, share awards, and performance bonuses that averaged approximately R139,400 per day over a decade.

The figures, compiled from Woolworths remuneration reports, provide insight into how executive compensation is structured in major listed companies and how pay can fluctuate depending on company performance, long-term incentives, and shareholder returns.

The debate around executive remuneration has intensified globally as investors and employees increasingly question whether CEO pay reflects company performance. Woolworths’ experience over the last decade provides a case study of how leadership compensation is linked to corporate results, market conditions, and strategic decisions.

Woolworths CEO Pay Under Ian Moir

One of the most influential figures in the retailer’s modern history was Ian Moir Woolworths CEO from November 2010 until February 2020.

During his tenure, Woolworths expanded aggressively and pursued international growth opportunities, most notably through the acquisition of Australian retailer David Jones. Initially, the company delivered strong earnings growth, which translated into substantial rewards for senior executives.

Moir’s highest annual remuneration was recorded in 2016, when he earned R53.7 million following strong headline earnings growth and positive financial results.

Ian Moir’s Remuneration Over the Years

While these figures remain substantial, they reveal a downward trend in executive earnings during the latter years of Moir’s leadership.

The decline largely reflected Woolworths’ struggles with its Australian operations, especially the underperforming David Jones acquisition, which became a significant challenge for the retailer.

As profitability weakened and performance targets were missed, Moir forfeited both short-term and long-term incentive awards. This resulted in a dramatic reduction in his total remuneration before his departure in early 2020.

The David Jones Challenge

A key factor affecting Woolworths’ performance and executive compensation was the acquisition of David Jones in Australia.

Initially viewed as a transformational deal that would expand the retailer’s international footprint, the acquisition later became one of the most debated decisions in the company’s history.

The Australian department store sector faced significant pressure from:

• Changing consumer habits
• Increased online competition
• Economic uncertainty
• Rising operational costs

These challenges negatively impacted profitability and contributed to declining investor confidence.

The consequences were visible in Woolworths’ financial performance and share price, ultimately affecting executive bonuses and long-term incentive payments.

Roy Bagattini Remuneration Reaches Record Levels

When Roy Bagattini took over as Group CEO on 17 February 2020, expectations were high.

Bagattini inherited a company facing significant operational and strategic challenges. However, he also arrived with extensive retail experience and a mandate to improve performance across both South African and Australasian operations.

Unlike his predecessor, Bagattini’s compensation structure was more complex because he managed operations spanning multiple countries.

As a result, his remuneration package included payments in both South African rand and Australian dollars.

Roy Bagattini Remuneration Breakdown

Bagattini’s largest payday came in 2023 when his remuneration surged to an extraordinary R122.4 million.

This coincided with one of Woolworths’ strongest recovery years, during which the retailer reported adjusted profit before tax of R6.6 billion.

The strong financial performance enabled Bagattini to exceed short-term incentive targets while also benefiting from the full vesting of long-term incentive allocations granted when he joined the company.

Why Roy Bagattini Earned So Much

The dramatic increase in Roy Bagattini Remuneration was not solely driven by salary.

A substantial portion came from:

Short-Term Incentives

Performance-related bonuses linked to annual financial targets.

Long-Term Incentives

Share awards designed to encourage sustained company growth and shareholder value creation.

Sign-On Compensation

Restricted share plans awarded when Bagattini joined Woolworths in 2020.

The sign-on package compensated him for incentives forfeited when leaving his previous employer.

The final portion of this award vested in 2025, adding approximately R38.8 million to his annual remuneration.

This significantly boosted his earnings even during years when Woolworths failed to meet financial performance targets.

Executive Pay vs Company Performance

The relationship between executive compensation and company performance remains a contentious issue.

Supporters argue that attracting top leadership talent requires competitive remuneration packages.

Critics, however, question whether large executive payouts are justified when shareholder returns remain mixed.

In Woolworths’ case, the company experienced significant volatility during the same period that executives earned hundreds of millions of rand.

While there were years of strong profitability and operational improvements, investors also faced periods of disappointing returns and declining share prices.

Woolworths Share Price Performance

The Woolworths Share Price has undergone major fluctuations over the last decade.

In 2016, the stock traded near R93.50 on the Johannesburg Stock Exchange (JSE).

However, investor confidence weakened as concerns about the David Jones acquisition and broader economic challenges intensified.

Share Price Milestones

Despite recovery efforts, the share price at the end of 2025 remained around 41% below its 2016 level.

This performance raises important questions about how executive remuneration should be evaluated in relation to shareholder returns.

Recovery Through Restructuring

One of the major turning points for Woolworths came through restructuring initiatives.

The company refocused on its South African operations while taking steps to address challenges associated with David Jones.

Strategic actions included:

• Operational efficiencies
• Cost management
• Portfolio adjustments
• Enhanced supply chain capabilities
• Improved inventory management

These measures helped restore profitability and improve investor sentiment.

The retailer’s ability to recover from significant setbacks demonstrates the resilience of its business model and brand strength.

Strong Results Despite Market Challenges

Despite ongoing economic uncertainty, Woolworths delivered encouraging results during the first half of 2026.

The retailer reported positive sales growth across all major business segments.

Key Performance Highlights

• Group turnover and concession sales increased by 5.4%
• Constant currency growth reached 6.1%
• Headline earnings per share rose 9.6%
• Food division continued outperforming the market
• Apparel business improved profitability

These results reflected strong execution in a challenging retail environment.

Pressure on Profit Margins

Although revenue growth remained positive, Woolworths acknowledged ongoing pressure on profit margins.

Several factors contributed to these challenges:

Distribution Investments

The company continued expanding logistics and distribution capacity.

Pricing Initiatives

Targeted promotions and competitive pricing strategies affected margins.

Economic Conditions

Consumers remained under financial pressure amid inflation and higher living costs.

Despite these headwinds, disciplined cost control helped support profitability.

Commitment to Shareholders

Woolworths also continued returning value to shareholders.

The company announced:

• Interim dividend increase to 118 cents per share
• Ongoing share buyback programme
• Repurchase of 6.9 million shares
• Average repurchase price of R51.23 per share

These measures signal management’s confidence in the company’s long-term prospects.

For investors, shareholder returns remain a key measure of leadership effectiveness alongside executive compensation.

New Leadership Era Begins

A major transition occurred at the end of May 2026 when Roy Bagattini stepped down as Group CEO.

On 1 June 2026, Sam Ngumeni officially assumed leadership of the retailer.

His appointment marks the beginning of a new chapter for Woolworths.

Ngumeni inherits a business that has undergone significant transformation and restructuring over the past decade.

His key priorities are expected to include:

• Driving growth in South Africa
• Expanding digital capabilities
• Enhancing customer experiences
• Maintaining profitability
• Delivering shareholder value

Investors will closely watch how the company performs under its new leadership.

Executive Pay Debate Continues

The story of The two men Woolworths paid R140,000 a day for 10 years reflects broader questions about executive compensation across the global corporate landscape.

Supporters of performance-based pay argue that executives should be rewarded for creating shareholder value and navigating complex business environments.

Critics contend that remuneration levels often remain excessive even when company performance falls short of expectations.

As businesses face growing scrutiny from shareholders, regulators, and the public, executive pay structures are likely to remain a key governance issue.

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The two men Woolworths paid R140,000 a day for 10 years earned a combined R508.75 million between 2016 and 2025, highlighting the scale of executive remuneration in South Africa’s retail industry. While Ian Moir and Roy Bagattini received substantial compensation packages tied to performance and long-term incentives, their earnings also coincided with periods of both strong growth and significant corporate challenges.

The Woolworths story demonstrates how executive pay is influenced by company performance, shareholder expectations, and strategic outcomes. As Sam Ngumeni takes over leadership of one of South Africa’s most recognisable retailers, the focus will shift toward the company’s future growth prospects and whether it can continue delivering value for customers, employees, and investors alike.

References from Mainstream Media

1. BusinessTech – The two men Woolworths has paid R140,000 a day for 10 years
   https://businesstech.co.za/news/business/863810/the-two-men-woolworths-has-paid-r140000-a-day-for-10-years/
2. Business Day – Annual pay of Woolworths CEO more than triples to R122m
   https://www.businessday.co.za/bd/companies/retail-and-consumer/2023-10-01-annual-pay-of-woolworths-ceo-more-than-triples-to-r122m/
3. BusinessTech – Former Woolworths boss Ian Moir’s R44 million farewell
   https://businesstech.co.za/news/finance/436939/former-woolworths-boss-ian-moirs-r44-million-farewell/

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